Accounts receivable COGS Sales Revenue Accounts Payable Inventory Salary Payable Salary expenses $115,000 $520,000 $850,000 $80,000 $92,000 $15,500 $50,000 A company uses the indirect method to prepare the statement of cash flows. It presents the following data on its financial statements as above. Which of the following is correct about accounts receivable in the operating activities category of the cash flow statement? ** HINT- Think about if you were trying to get CASH collected. If Accounts Receivable INCREASED then did you collect that cash? Question options: **The increase of $17,000 will be subtracted from sales to determine cash received from customers. The increase of $17,000 will be added to sales to determine cash received from customers The increase of $17,000 will be added to net income The increase of $17,000 will be subtracted from net income 22 of 23 101412-78% 2446 words X Focus E E 10 an- + 1099 End of prior year $98,000 Accounts receivable COGS Sales Revenue Accounts Payable Inventory Salary Payable Salary expense End of this year $115,000 $520,000 $850,000 $80,000 $92,000 $15,500 $50,000 $65,000 $110,000 $12,000 $44,000 A company uses the direct method to prepare the statement of cash flows. It presents the following data on its financial statements as above. Which of the following is correct about accounts receivable in the operating activities category of the cash flow statement? ** HINT- Think about if you were trying to get CASH collected. If Accounts Receivable INCREASED then did you collect that cash? Question options: **The increase of $17,000 will be subtracted from sales to determine cash received from customers. The increase of $17,000 will be added to sales to determine cash received from customers The increase of $17,000 will be added to net income The increase of $17,000 will be subtracted from net income